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The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. The SEC Reports set forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. 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The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. Schedule 3.1(aa) sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. 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The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). Except as set forth in the Registration Statement and the Prospectus, the Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from each Closing Date. The Registration Statement and the Prospectus set forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the purposes of this Agreement, \u201cIndebtedness\u201d means (x) any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the Company\u2019s consolidated balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (z) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance with U.S. GAAP. Except as set forth in the Registration Statement and the Prospectus, neither the Company nor any Subsidiary is in default with respect to any Indebtedness.", "size": 516, "snippet_links": [{"key": "based-on", "type": "definition", "offset": [0, 8]}, {"key": "financial-condition-of-the-company", "type": "clause", "offset": [26, 60]}, {"key": "closing-date", "type": "definition", "offset": [72, 84]}, {"key": "after-giving", "type": "clause", "offset": [86, 98]}, {"key": "by-the-company", "type": "clause", "offset": [121, 135]}, {"key": "the-offered-securities", "type": "clause", "offset": [169, 191]}, {"key": "the-current", "type": "clause", "offset": [203, 214]}, {"key": "cash-flow-of-the-company", "type": "definition", "offset": [215, 239]}, {"key": "in-respect-of", "type": "definition", "offset": [435, 448]}, {"key": "ability-to-pay", "type": "definition", "offset": [562, 576]}, {"key": "registration-statement-and-the-prospectus", "type": "clause", "offset": [727, 768]}, {"key": "the-company-has", "type": "definition", "offset": [770, 785]}, {"key": "knowledge-of", "type": "definition", "offset": [789, 801]}, {"key": "bankruptcy-or-reorganization", "type": "clause", "offset": [916, 944]}, {"key": "any-jurisdiction", "type": "definition", "offset": [953, 969]}, {"key": "within-one-year", "type": "definition", "offset": [970, 985]}, {"key": "date-hereof", "type": "clause", "offset": [1076, 1087]}, {"key": "indebtedness-of-the-company", "type": "clause", "offset": [1126, 1153]}, {"key": "for-the-purposes-of-this-agreement", "type": "clause", "offset": [1233, 1267]}, {"key": "liabilities-for", "type": "clause", "offset": [1298, 1313]}, {"key": "borrowed-money", "type": "clause", "offset": [1314, 1328]}, {"key": "amounts-owed", "type": "definition", "offset": [1332, 1344]}, {"key": "trade-accounts-payable", "type": "definition", "offset": [1378, 1400]}, {"key": "contingent-obligations", "type": "definition", "offset": [1490, 1512]}, {"key": "indebtedness-of-others", "type": "clause", "offset": [1527, 1549]}, {"key": "consolidated-balance-sheet", "type": "clause", "offset": [1619, 1645]}, {"key": "the-notes", "type": "clause", "offset": [1650, 1659]}, {"key": "guaranties-by", "type": "clause", "offset": [1677, 1690]}, {"key": "negotiable-instruments", "type": "definition", "offset": [1706, 1728]}, {"key": "transactions-in-the-ordinary-course-of-business", "type": "definition", "offset": [1766, 1813]}, {"key": "present-value", "type": "definition", "offset": [1827, 1840]}, {"key": "payments-in", "type": "clause", "offset": [1854, 1865]}, {"key": "in-accordance-with", "type": "definition", "offset": [1928, 1946]}, {"key": "neither-the-company", "type": "definition", "offset": [2028, 2047]}, {"key": "in-default", "type": "clause", "offset": [2070, 2080]}, {"key": "with-respect-to", "type": "clause", "offset": [2081, 2096]}], "samples": [{"hash": "gZA2Jk6uyi4", "uri": "/contracts/gZA2Jk6uyi4#solvency", "label": "Underwriting Agreement (Zerolimit Technology Holding Co. 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[["representations-and-warranties", "Representations and Warranties"], ["representations-and-warranties-of-the-company", "Representations and Warranties of the Company"], ["miscellaneous", "Miscellaneous"], ["sec-reports-financial-statements", "SEC Reports; Financial Statements"], ["representations-and-warranties-of-seller", "REPRESENTATIONS AND WARRANTIES OF SELLER"]], "id": "solvency", "related": [["solvency-certificate", "Solvency Certificate", "<strong>Solvency</strong> Certificate"], ["solvency-assurances", "Solvency Assurances", "<strong>Solvency</strong> Assurances"], ["solvency-certificates", "Solvency Certificates", "<strong>Solvency</strong> Certificates"], ["solvency-opinion", "Solvency Opinion", "<strong>Solvency</strong> Opinion"], ["financial-solvency", "Financial Solvency", "Financial <strong>Solvency</strong>"]], "related_snippets": [], "updated": "2026-05-02T06:14:35+00:00", "also_ask": ["What objective tests or representations should a solvency clause include to ensure enforceability?", "How can parties negotiate the scope of solvency warranties to balance risk and disclosure?", "What are the most common pitfalls or fatal flaws in drafting solvency clauses?", "How do solvency clause standards differ across jurisdictions or transaction types?", "What evidence is typically required in court to prove breach of a solvency clause?"], "drafting_tip": "Define solvency criteria precisely to avoid ambiguity; require regular solvency certifications to ensure ongoing compliance; specify remedies for breach to facilitate enforcement.", "explanation": "A Solvency clause requires a party, typically the seller or service provider, to affirm that they are financially stable and not subject to insolvency proceedings at the time of entering into the agreement. This clause may obligate the party to disclose any material adverse financial conditions or ongoing bankruptcy actions, and sometimes requires ongoing notification if their solvency status changes during the contract term. Its core function is to protect the other party from entering into or continuing a contractual relationship with an entity that may be unable to fulfill its obligations due to financial distress, thereby reducing the risk of non-performance or default."}, "json": true, "cursor": ""}}